Arm launches second-generation CSS, targets China's AI smartphone market with C2 CPU

Arm’s launch of the second-generation CSS signals a strategic push toward AI-integrated mobile chipsets, directly challenging Qualcomm and MediaTek’s dominance. This move strengthens the ecosystem in China, particularly benefiting foundries in China Taiwan/ Taiwan, China and China Hong Kong/ Hong Kong, China, who will likely accelerate adaptation to support the new architecture. However, geopolitical tensions, especially amid U.S.-China tech decoupling, pose compliance risks that could impact supply chain stability. Competitors may respond by accelerating in-house CPU development or deepening local partnerships. Over the next 12–24 months, AI-enabled smartphones will become standard, and Arm’s ability to navigate regulatory and technical landscapes will determine its market share trajectory.